Which of the Following Are the Two Pervasive Judicial Doctrines

question 26

Multiple Choice

Which of the following are the two pervasive judicial doctrines that often limit the taxpayer's ability to employ effective planning techniques?

• A) the progressive tax rate requirement and marginal rates.
• B) business purpose and substance over form.
• C) business purpose and changing tax jurisdiction.
• D) All of the above are judicial doctrines that limit effective tax planning.

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Definitions:

Franchisor

A company that grants the license to an individual or group to carry out and operate a business under its brand and trademark.

License

A legal permission granted by a competent authority allowing a party to engage in a particular activity or to use a specific piece of intellectual property.

Market

A place or mechanism where buyers and sellers interact to trade goods, services, or securities, determining prices through supply and demand.

Franchisee

An individual or company that is granted the right by a franchisor to operate a business under the franchisor's trademark and business model.